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View Diary: NY Attorney General to Sue Wells Fargo & BofA (49 comments)

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  •  Kinda, Sorta... (1+ / 0-)
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    "a wet noodle lashing"

    I’m not trying to trash this injunction effort; at least it brings the banks’ continuing bad acts, their seemingly constant bad faith, and the impotence of the enforcement fraud settlement back into the public eye. And maybe the threatened suit will even do some good for some New Yorkers. But it’s hard to be confident that this suit is the most effective way to be taking on the banks.

    For example, the settlement’s liability release doesn’t cover all these new bad acts. When the SEC finds new acts in violation of prior injunctions, it typically brings new (albeit equally ineffective) enforcement actions. Maybe AG Schneiderman could use the new bad acts to bring a meaningful, new enforcement action. Or maybe there’s a different genre of banker bad action that could lead to more meaningful penalties, drive business model change and put bankers in jail.

    I wish I could get excited about this threatened lawsuit. Just like I wish that watching SchoolHouse Rock’s I’m Just A Bill and Preamble didn’t make me cry. And yet I let my preschoolers watch them because I want them to grow up believing in the America that can be, if we Americans bring the transnational corporations and their parasitical executives to heel. It’s been done before, and can be done again. But deals like the National Mortgage Settlement, with all those law enforcers’ signatures, show that this President and this Congress aren’t going to do it.

    Kayfabe as they say in pro wrestling!

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